U.S. Representatives Steve Scalise (R-La.) and David B. McKinley, P.E. (R-W.Va.) introduced a resolution that, if passed, would express the sense of Congress that a carbon tax would be detrimental to the United States economy and harm working-class Americans the most.
This is self-evidently true. In fact, it is so obviously true, a reasonable person might ask why such a resolution is even necessary. Do we really need a resolution that is as obvious as the sun rises in the east?
Sadly, even though the resolution’s point — that carbon taxes are harmful — is painfully obvious, the resolution is necessary. There are many voices on the national stage that support virtually any new tax and particularly any energy tax. The Biden administration has made it clear it considers the energy sector the enemy — killing pipelines, proposing new taxes, and advocating for new burdensome regulatory regimes and mandates. But this is counterproductive!
A carbon tax — no matter who they tell you will pay it — will hit the economy hard and will hit lower-income Americans the hardest. A carbon tax would increase the cost of everything Americans buy — from groceries, to electricity and gasoline, to home heating in the winter, to everyday household products. Moreover, having a reliable source of affordable energy is foundational to a strong job market and strong economic growth. The rich don’t need a strong job market or strong economic growth to build a better future for themselves and their families. They’ve already got that. But the working middle class and the working poor need a robust jobs market and economic growth to push wages higher.
The additional costs imposed on the working class by a carbon tax are difficult to bear. Their budgets are already tight. Are they going to go to work less often or heat their home less in the winter? They are kind of stuck. If you increase their energy costs, they have to give up other necessities. And if you damage the economy, their hope for better times and brighter days ahead evaporates. That’s way too high a price to pay for whatever false promises the elites are offering.
America achieved energy independence when only a few short years ago, it was widely perceived that we would always be forced to import energy and rely upon energy from hostile nations. Energy independence had obvious economic benefits, but it also had national security benefits. For much of the last two generations, American foreign policy had to worry about keeping the oil flowing from the Middle East. Given the volatility of the region, that often forced some unpleasant foreign policy considerations on American policymakers. But with energy independence, hostile powers could no longer hold us hostage or use energy as a leverage point. Thus, we were more secure. A carbon tax would put all of this at risk.
Some privileged elites see their support for a carbon tax as some sort of virtue. And they think it makes them look good. But what is there to feel so superior about in forcing working-class Americans to pay higher energy bills, transportation costs, and higher costs for food and household items — all while also being forced to suffer lower or suppressed wages?
This resolution tells Congress and the Biden administration that Americans expect accountability in their government. The Biden Administration is attacking energy through its attempts to force us into expensive electric vehicles and to use legitimate infrastructure needs as cover for redistributing taxpayer money to favored technologies like windmills and solar panels. This is all reminiscent of Solyndra, which gave away hundreds of millions of taxpayer dollars to well-heeled political donors in the guise of energy policy but was ultimately a boondoggle and nothing more.
Rather than trying to use energy policy as a way to push Americans into the buying preferences of a few political elites, let’s unleash the power of the free market and human creativity! We can have reliable, affordable energy and a clean environment. But only if we allow and encourage innovation, rather than imposing government mandates and taxes.
By H. Sterling Burnett • Investor’s Business Daily
Recently, Real Clear Energy published a thoughtful analysis of carbon taxes authored by Vince Ginn and Jonathan Williams, allies of mine in the fight to promote individual liberty, constitutionally limited government, and U.S. energy dominance.
As Ginn and Williams show, the case for taxing greenhouse gas (GHG) emissions — intentionally and misleadingly called a “carbon tax” — is fundamentally flawed and, accordingly, has been rejected every time Congress has considered one. For instance, in 2009 and 2010, President Obama and Democrats, despite having control of Congress, failed to pass climate change legislation.
Ginn and Williams rightly note a carbon tax would raise energy prices, meaning it would increase the price of almost everything. Indeed, according to a 2014 Heritage Foundation analysis, the creation of a $37-per-ton carbon tax would lead to a loss of more than $2.5 trillion in aggregate gross domestic product, amounting to $21,000 in lost income per family by 2030.
In addition, a carbon tax would result in a loss of more than 1 million jobs, including 500,000 manufacturing jobs, by 2030.
Energy prices will rise as large, coal-fired power plants are taken off line without a credible plan to replace them. Eliminating one-third of America’s coal plants is a choice for Congress to make, not the EPA.
President Barack Obama, in presenting his strident new plan to reduce carbon emissions, is touting the health benefits of cleaner air. And there’s little doubt shutting down one-third of the nation’s coal plants will make America’s air cleaner and some people healthier.
But it will also risk making them hungrier, less prosperous and more likely to be unemployed as the nation’s economy slows and jobs disappear. The tough, new restrictions on smokestack emissions are the latest in a series of battles in the administration’s war on coal. Continue reading
by Ben Geman
EPA’s big new draft regulations to cut power-plant carbon dioxide emissions name-check all kinds of tools that states can use to comply with the standards.
They include renewable-power growth, efficiency programs, switching coal plants to natural gas, and cap-and-trade initiatives, which are already underway in California and among Northeastern states. Not mentioned: Imposing state-level carbon taxes on power-plant emissions.
It’s not something the agency is likely to tout at a time when top Republicans are already trying to frame the whole rule as a “national energy tax.” But EPA officials, when asked, made it clear Monday that a state could indeed choose to go the carbon tax route. Continue reading
It is not surprising that there are liberals in Washington proposing new stealth carbon taxes. What is surprising is that a few “conservatives” support the idea. Even more inexplicable is the fact that some have called the carbon tax a “once in a generation opportunity.”
Let me see if I’ve got this right. A huge, gargantuan tax increase — one that would make everything cost more — is a “once in a generation opportunity?”
Every single day for the last 30 years and every single day for the next 30 years, liberals will crawl over top of each other to be the first one to sign-on to a new energy tax. This is a deal that liberals will always be willing to give. Continue reading
The economy is not some theoretical concept or ivory tower idea. A strong economy means that Americans have jobs and growing incomes. It means that families can provide their children with the care and opportunities that will provide for a bright future. Conversely a weak economy means fewer jobs and less opportunity. It means lower incomes and it means that families have to do without.
Too often big government slows the economy by taxing and spending too much. Those who support more and more government taxes and spending always argue that government can do something good with the money. But the problem with that argument is that families and businesses also can do a lot of good with that money if government doesn’t take it away from them. Continue reading